Read below a list of dreamhost disasters. Clearly the place is run to react rather than anticipate. ALL THOSE CONTEMPLATING JOINING DREAMHOST DONT’ DO IT. THERE ARE PLENTY OF LO-COST PROVIDERS THAT HAVEN’T HAD THIS RECORD OF DISASTERS. Google “cheap webhosting” and you’ll get links such as this: http://b2evolution.net/web-hosting/budget-web-hosting-low-cost-lamp.php
A disastrous power outage incident in August of 2006 led to a frank account of what happened by Josh Jones that set a particular tone for the future. It was followed by the creation of a status site dedicated to detailing server maintenance and outages.
2007 Security Issue
According to the company, the control panel was thought to have been partly to blame for a June 2007 incident in which approximately 3,500 FTP account passwords were compromised, at a time when the company took care of more than 500,000 domains. Customers were notified by email, and a few found their sites had been altered to deliver malware. Upon further investigation, new evidence came to light that cast doubt on the theory that the control panel was responsible.
2008 Billing Issue
On January 15, 2008, the billing system was mistakenly used to bill users up to December 2008. Josh Jones had intended to bill any accounts that had failed to be billed in late December 2007 due to an upgrade discrepancy, but he entered “2008” instead of “2007”. This resulted in erroneous charges of $2.1 million, out of the $9.6 million in total that was billed.
Most users were inconvenienced, especially those who had automatic billing enabled, causing bank accounts and credit cards to become overdrawn or incur charges. Many accounts were automatically suspended due to an inability to pay the erroneous bill, which led their websites to go down. The comic tone in which Jones announced the error drew criticism, and some users have canceled their accounts. As DreamHost tried to undo the billing, some accounts that were not billed received refunds, while accounts that were billed did not receive them.
Some subscribers still have not received refunds. In a blog entry, DreamHost indicates that it will pay for overdraft, bounced check and NSF fees, and give affected users the same amount of credit on their DreamHost accounts, for customers who document such charges.